#digitallending #fintech

While ‘digital lending’ has been a buzz word in recent times, it has no universally articulated (and understood) definition. The lending can be of any shape including personal loans, two-wheeler loans, four wheeler loans, SME finance and home loans. Further it has expanded to consumer loan applications made digitally. Digital lending presents a large opportunity in the Indian context. Fintech startups have been at the forefront of digital loans. Annual digital disbursements 5 years hence would be nearly 5X that of current levels. It is absolutely true that technology and data will emerge as the new power centers in the organization. It is estimated that the total retail loans which could be disbursed digitally in the next 5 years could be over 1 trillion dollars. A report says, retail credit will play a pivotal role in making it a 5 trillion-dollar economy by backing and boosting the consumption levels.



Given the low penetration of credit in India, lending is an attractive business opportunity. With the help of technology and democratizing the data, several non-financial services companies have entered the lending space over the last few years. New age fintechs, with their lean organization and innovative operating models, will continue to offer agile and cutting edge products that will address current consumer pain points while taking a loan. Secondly, digitization of various databases and records has resulted in a multi-fold increase in data of individuals and corporations being digitally available. However, we can’t say whether the data is getting collected with the consent or without the consent through multiple sources with the pre-designed consent architecture is a certainty and is not too far in the future. Technological advancements will disrupt how consumers research and apply for a loan, as well as the onboarding experience.

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